Indian rupee appreciated against US dollar on Tuesday on the back of a decline in global crude oil prices and a weaker greenback. Foreign fund inflows and positive domestic equity markets further boosted the rupee. According to exchange data, FIIs bought equities worth Rs 321.16 crore on Monday. Traders took some support as US extended the suspension of reciprocal tariffs on India until August 1, 2025. This extension allows both nations additional time to resolve outstanding issues and potentially finalize an interim trade deal. Besides, Crisil Ratings in its latest report has said that debt securitisation volumes have inched up to Rs 49,000 crore during April-June 2025 (Q1FY26) as compared to Rs 45,000 crore recorded in the year-ago period. On the global front, antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major currencies in the Asian session on Tuesday, as Asian markets traded higher following Trump's softened stance on tariff hikes.

Finally, the rupee ended at 85.73 (Provisional), appreciated by 21 paise from its previous close of 85.94 on Monday. The currency touched a high and low of 85.80 and 85.64 respectively.